A down year in public markets led to a severe slowdown in new debt issuance in 2022, resulting in increased pressure in the banking sector. During the first half of 2023, the collapse of three US regional banks—in addition to the collapse of Credit Suisse in Europe—led to a further slowdown in bank lending. In […]
August 2023
The transition to a low-carbon economy consistent with the 2015 Paris Agreement to limit global warming requires ambitious technological advancements and continued scaling of existing technologies. Such a massive economic transition by 2050, with meaningful progress by 2030, would be unprecedented but is not impossible, with adequate focus and funding. Indeed, significant progress has been […]
July 2023
Yes. Despite elevated macro uncertainty, it is an opportune time to allocate to private credit. Rising interest rates, reduced competition from traditional lenders, and improving documentation mean these should be attractive vintages for direct lending. In a similar vein, credit opportunities funds are finding rich pickings thanks to growing risk aversion, rising distress, and the […]
July 2023
Private credit has become a popular asset class among pension plan sponsors seeking yield enhancement over their public fixed income allocations. The non-bank finance market has flourished since the Global Financial Crisis due to a more restrictive bank regulatory environment, resulting in reduced bank lending activity, and a wide range of private credit opportunities are […]
July 2023
Families of significant wealth can experience sustained periods of time where liquidity is not a foremost priority. Demands for liquid capital can rapidly emerge, however, like the sudden onset of the COVID-19 crisis in March 2020, and cause trouble for the unprepared. In the worst-case scenario, investors may need to sell growth-focused assets during a […]
July 2023
Saving on Pension Benefit Guaranty Corporation (PBGC) premiums has long been at the forefront of many pension risk management decisions. When interest rates were near historic lows during 2019 and 2020, many single-employer plan sponsors changed their methodology for calculating these premiums to reduce their tax obligation to the federal government. Although it appeared like […]
July 2023
For families of significant wealth, complexity is a natural byproduct of a well-managed portfolio. A dynamic portfolio can help address a number of investment challenges that families of wealth face, including varying multigenerational preferences, unique tax considerations, domicile requirements, and specific beneficiary needs. Yet there is also such a thing as overcomplexity, which can waste […]
June 2023
No. While the exciting developments in artificial intelligence (AI) have been a bright spot for equity markets this year, we do not think value will continue to lag growth. In fact, we expect it will outperform over the next several years. Growth indexes have already retraced nearly all of last year’s underperformance relative to value. […]
June 2023